Baku Oil Families Seek Redress

IWPR – Institute for War and Peace Reporting
March 25 2005

Baku Oil Families Seek Redress

Descendants of turn-of-the-century millionaires demand the right to
lost property.

By Samira Ahmedbeili in Baku (CRS No. 279, 25-Mar-05)

Heirs of early 20th century Azerbaijani oil barons executed by the
Soviet regime are suing the state for confiscated property.

The relatives of long-dead tycoons Zeinalabdin Tagiev, Musa Nagiev
and Murtuza Mukhtarov first took the state to court seven years ago,
and have since filed 11 lawsuits with different district courts in
Azerbaijan, seeking a reversal of the Soviet government’s decision to
confiscate their forefathers’ mansions.

“Our great-grandparents were very rich, but we only want a small part
of what they owned,” Tagiev’s great-granddaughter Nailia Abdullaeva
told IWPR. “We only want the non-residential buildings back. We have
no intention to evict anyone, although my great-grandfather’s family
was literally thrown out. They wouldn’t even let them take any
personal items.”

The turn-of-the-century oil boom in Baku made many common people
fabulously rich. At the time, Baku oil wells supplied over 90 per
cent of all oil for the Russian Empire. The rest was supplied by
Astrakhan and Grozny. Then the new Bolshevik regime stripped the Baku
oil tycoons of all their property. Some of them were subsequently
sent to the Gulag, others simply shot and killed without trial.

It was not until 1998 that a certain Yusif Abdullayev, an
attorney-at-law and descendant of the aristocratic families of the
Baku khans, first stood up for his rights to his family heirloom. In
his lawsuit, filed with Surakhani District Court, he claimed the
Bakikhanov estate in Amirjany, and won. “My cousin now lives there,”
said Abdullaev. “The Surakhani court also confirmed my blood relation
to Murtuza Mukhtarov, the oil baron.”

Mukhtarov started out as a coach driver. Having saved up some money,
he invested it in a budding oil business. In 1919, Mukhtarov’s wealth
totalled nine million roubles, a fortune at the time.

Having won the case, Abdullayev began searching for archival evidence
of Mukhtarov’s possessions. He learned that his ancestor’s property
in Baku alone included 13 estates, two refineries, plenty of land, an
arboretum and a lighthouse. In addition, he owned estates and
manufacturing facilities in Grozny, Kislovodsk, St Petersburg and
Moscow. Abdullayev said properties outside Azerbaijan are the hardest
to track down for lack of evidence.

Last year, Abdullayev brought legal action in the Sabail district
court, seeking the return of two of his ancestor’s former properties.
But he wasn’t as lucky this time. Not only did the district court
rule against Abdullayev, the judge went so far as to repeal the
previous court ruling.

“The judge said my relation to Mukhtarov had been verified
erroneously, and I’m not really his relative,” Abdullayev said.
“Mukhtarov himself died before the 1917 Bolshevik revolution. His
wife and five children died in the Gulag. He does not have an heir.
But Mukhtarov had two sisters, Tukezban and Ziniet. As a relation of
Tukezban’s, I represent the descendants of Mukhtarov’s sisters.”

One of the buildings claimed by Abdullayev is also one of Baku’s
finest architectural gems. The Palace of Happiness is the main
wedding venue in central Baku and also houses the Composers Union and
other organisations.

“The building is simply going to waste, it’s been decades since it
was last repaired,” said a member of the Composers Union who asked
not to be named. “This despite the fact that the union makes quite a
lot of money subletting its premises. I don’t think the building
would be in a such a sorry state of disrepair if it had a private
owner.”

The part of the building housing the wedding palace is in better
condition. “We haven’t done any major repairs for quite a while, but
at least we keep everything clean and in good working order. If
something breaks, we have people come and fix it,” said Maya
Hasanova, who heads the marriage palace, adding she was against
privatising a building that has housed a public institution for
decades.

The Sabail court also rejected Nailya Abdullayeva’s claim of blood
relation to another oil tycoon, Tagiev. “I’m not just some distant
relative; I’m his great-granddaughter,” she told IWPR.

Abdullaeva is claiming three buildings from her great-grandfather’s
empire: the History Museum, the Tagiev Factory, and the Baku
Department Store or Univermag.

Nailya Velikhanova, head of the History Museum, said she was shocked
by the prospect of the building passing into private hands. “It’s
expensive to keep up the exhibits, but it will cost even more to move
them out. Privatising the museum is a bad idea, although the state is
unable to properly keep it up. We have only renovated one floor since
renovation started three years ago. We are waiting for a World Bank
loan to finish the job. Only a very rich person who is crazy about
history should be allowed to privatise historical landmarks,” she
said.

Tagiev was the tycoon of them all, possessing an estimated 30 million
roubles in assets. He came from a simple background and lost his
acquired wealth under the Soviets. Tagiev died in abject poverty in
1924, and all his children met with a similar fate. His youngest
daughter, Sara Tagieva, lived and died in poverty in 1993, when her
father’s good name had already been restored.

“My great-grandfather gave lavishly to charity; he did a lot for the
country and its people, but they weren’t as grateful as you’d think.
The time has come to redress that historical injustice,” Abdullayeva
said.

Diliara Nagieva is claiming five estates from the government that
used to belong to her grandfather Musa Nagiev: the Musa Nagiev
Hospital, a book superstore, the office building of the Russian oil
giant Lukoil, the officers’ club house and a building at 69
Neftchiliar prospekt. So far, the Sabail and Khatain district courts
have roundly rejected her pleas.

Musa Nagiev was a simple workman when he struck oil and made an
amazing 10 million roubles in the petroleum business. He did not live
to see Azerbaijan overtaken by the Soviets. During interethnic
clashes with Armenians in March 1918, the Ismailia Palace, Nagiev’s
pride and joy, built and named in honour of his only male child who
had died at a very young age, was badly damaged. Nagiev never
recovered from the shock, and died a year later, in March 1919.

“His only daughter also died young,” Diliaria Nagieva told IWPR.
“Nagiev then adopted his nephew, my father, who was a talented but
impoverished theatre actor. The adoption saved him from the
communists.”

Having lost their cases in all district courts, the heirs went higher
and challenged the rulings in the appeals court, but it reaffirmed
the earlier decisions.

The government is fighting this flood of requisition claims. Baku
mayor Hajibala Abutalybov told ANS television channel it was a
preposterous idea to give government property away to some strangers
just because they claim to be descendants of former owners. “These
estates they are claiming have belonged to the state for many
decades,” said the mayor. “Only the court has the power to decide the
fate of these buildings.”

Farzali Aliev, an independent lawyer, said inheritance cases present
many challenges. Proving your rightful entitlement, he said, is only
half the battle, “First of all, the courts demand historical
evidence, or what we call ‘silent witnesses’. This makes things
complicated, as the necessary evidence is usually impossible to
unearth in the archives. If an heir wins the case, it is his duty to
provide housing of equal value to all residents occupying his
property.”

In fact many of the heirs could not afford an apartment even for a
single family, let alone resettle a whole building.

But the relatives of the oil tycoons say they want to carry on
fighting and will take their cases to the European Court of Human
Rights. “The descendants of Ashurbekov, Hajievsky, Dadashev and
Danilov are watching us,” said Tagiev’s great-granddaughter. “If we
win, they, too, will rise to claim their forefathers’ property back.”

Samira Ahmedbeili is a freelance journalist in Baku.